Bitcoin Dip Sparks Market Volatility, Leading to $650M in Liquidations
The cryptocurrency market experienced a sharp downturn, shedding 7% of its total market capitalization amidst…
The post Bitcoin Dip Sparks Market Volatility, Leading to $650M in Liquidations first appeared on Crypto Beat News.
The cryptocurrency market experienced a sharp downturn, shedding 7% of its total market capitalization amidst a broad sell-off that saw major tokens including Bitcoin (BTC), Ether (ETH), and others witness significant declines over the past 24 hours. This market movement, the most pronounced decline this year, has sparked a flurry of activity and speculation about the near-term future of cryptocurrency prices.
The decline was triggered by unexpectedly high inflation data and actions by traders taking profits, leading to a market-wide correction. Bitcoin notably slumped from a high of $73,000 on Thursday to a low of $65,800 early Friday, marking an 8% decrease that effectively erased the week’s gains and initiated a ripple effect across the cryptocurrency market.
Impact Across Major Tokens
The CoinDesk 20, which tracks the most liquid cryptocurrencies, registered an 8.25% decline. Alongside Bitcoin, other major cryptocurrencies such as Ether, Cardano’s ADA, BNB Chain’s BNB, and XRP experienced similar downturns. Volatile meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) saw even steeper falls of 13%. In contrast, Solana’s SOL tokens managed to buck the trend with a modest 1% increase since Thursday.
Losses across the board
The sell-off coincided with the release of the U.S. February Producer Price Index (PPI), which reported a 0.6% increase — double the pace seen in January and exceeding economists’ forecasts. This data dampened hopes for a potential interest rate cut in May, contributing to the market’s bearish sentiment.
The cryptocurrency futures market saw over $800 million in losses, with long positions or bets on rising prices suffering $660 million in liquidations. This phenomenon of forced closure of leveraged positions due to margin losses exacerbated the market downturn.
Potential for Further Losses
Some market analysts predict further declines in the coming weeks before a possible price recovery. According to Alex Kuptsikevich, a senior market analyst at FxPro, the attainment of new historical highs has prompted profit-taking among some investors. The question remains whether there will be sufficient demand at current levels or if a deeper correction is awaited.
“In a corrective scenario, the $65.0-65.5K and $60.0-60.5K areas are of particular interest, as they contain important round levels and Fibonacci retracement lines,” Kuptsikevich explained, highlighting potential support zones that could attract buyers looking for a rebound.
As the market navigates this period of volatility, investors and traders are closely monitoring developments, ready to adjust their strategies in response to new economic data and market sentiment.
The post Bitcoin Dip Sparks Market Volatility, Leading to $650M in Liquidations first appeared on Crypto Beat News.
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